Tesla’s (NASDAQ:TSLA) Q3 2024 earnings name comes on the heels of the corporate’s Q3 2024 Replace Letter, which was launched after the closing bell on Wednesday, October 23, 2024.
Tesla posted whole revenues of $25.18 billion, with automotive revenues of $20.02 billion in Q3 2024. The corporate additionally posted non-GAAP earnings per share of $0.72 and GAAP EPS of $0.62. Tesla posted $2.7 billion GAAP working earnings within the third quarter, and a document $33.6 billion in money.
The next are reside updates from Tesla’s Q3 2024 earnings name. I shall be updating this text in actual time, so please maintain refreshing the web page to view the most recent updates on this story. The primary entry begins on the backside of the web page.
Q3 2024 Earnings Name reside at 4:30pm CT https://t.co/FLyk30QBLk
— Tesla (@Tesla) October 23, 2024
17:38 CDT – And that’s a wrap for Tesla’s Q3 2024 earnings name! Thanks a lot for tuning in. We’ll see you on the subsequent occasion!
17:35 CDT – Adam Jonas from Morgan Stanley asks concerning the relationship between Tesla and xAI. Are the 2 firms working collectively, or are they competing? Elon Musk notes that xAI has been useful to Tesla AI fairly various occasions. Musk additionally highlighted that xAI is attempting to make synthetic common intelligence or superintelligence. Tesla is attempting to make autonomous automobiles.
“Tesla is targeted on real-world AI. It’s fairly completely different from an LLM,” Musk mentioned.
17:27 CDT – Elon Musk admitted that there’s a probability HW3 automobiles wouldn’t obtain the mandatory security stage for unsupervised FSD. If this had been to be the case, Musk famous that Tesla would substitute {Hardware} 3 with {Hardware} 4 freed from cost, no less than for individuals who bought FSD.
“There may be some probability that HW3 doesn’t obtain a security stage that permits for unsupervised FSD. If that seems to be the case, we are going to improve these two have purchased HW3 FSD totally free,” Musk mentioned.
17:24 CDT – A query concerning the Roadster is requested. Musk admitted that the Roadster’s reservation holders have been struggling for some time. He provides that the Roadster is the cherry on prime of the icing on the cake. He did, nevertheless, state that the Roadster must be behind among the firm’s extra prudent merchandise.
17:18 CDT – The entire Tesla Semi which were deployed, round 200 thus far, are geared up with the mandatory gear for FSD. Musk famous that FSD could be an enormous step for security for vehicles.
One other query is requested about Unsupervised FSD’s deployment in CA subsequent yr. Elon Musk famous that California loves rules, however he could be shocked if Tesla doesn’t get authorised subsequent yr. Corporations like Waymo are capable of deploy driverless automobiles within the state, in spite of everything.
Musk quipped that there ought to be a federal approval course of for autonomous automobiles. “I feel we should always have this nationwide approval course of for autonomy,” Musk mentioned.
17:13 CDT – One other query is requested concerning the Tesla Semi. Tesla executives famous that the power is on observe to begin preliminary builds subsequent yr, with manufacturing ramping full blast in 2026. Musk famous that there’s “ridiculous demand” for the Semi contemplating the car’s extraordinarily low price per mile.
Tesla executives famous that the Semi’s potential is already being confirmed by shoppers like PepsiCo. PepsiCo’s drivers don’t need to drive another truck as soon as they check out the Semi.
17:09 CDT – Musk highlighted that the Cybercab is technically a $25,000 automobile, however it’s an autonomous automobile, not manually pushed.
One other query is requested about assuaging wait occasions at service facilities. Firm executives highlighted that Tesla continues to be targeted on making automobiles that require as little service as potential.
Tesla, nevertheless, is arising with a system that’s impressed by a manufacturing facility, the place there are completely different lanes which can be devoted to several types of repairs. Automation can also be an enormous precedence.
17:05 CDT – Elon Musk highlighted that the Cybercab doesn’t simply characteristic revolutionary design. It additionally options revolutionary manufacturing. “It’s simply actually one thing particular,” Musk mentioned.
17:03 CDT – Investor questions start! First query is concerning the extra reasonably priced automobile. Tesla executives reiterated that plans are underway to provide extra reasonably priced automobiles within the first half of subsequent yr. This, nevertheless, possible includes reducing the price of present automobiles.
As for the $25,000 non-Robotaxi automobile, executives highlighted that Tesla is all in on autonomy. So there aren’t any plans to provide a non-autonomous model of the Cybercab.
17:00 CDT – The CFO highlighted Tesla Vitality’s margins, which handed 30% in Q3. This was because of a mixture of initiatives through the quarter. He additionally famous that Tesla Vitality is already filling in its 2024 manufacturing slots.
Tesla’s working bills declined quarter over quarter and yr over yr, partly because of the firm’s restructuring, which occurred in Q2.
16:58 CDT – Tesla’s CFO takes the stage. He famous that Tesla’s automotive revenues grew quarter over quarter and yr over yr. Tesla’s gross sales grew regardless of ASPs dropping.
He notes that Tesla is decided to develop unit quantity whereas avoiding a buildup of stock. To assist this technique, Tesla is rolling out compelling financing choices that make its automobiles extra attainable to customers.
Automotive margins improved quarter over quarter as properly. The manager additionally highlighted that Tesla is targeted on the associated fee per car, and there are quite a few work streams throughout the firm to squeeze that price with out compromising on buyer expertise.
16:53 CDT – Elon Musk famous that progress is being made within the Optimus program. He talked about Optimus’ next-generation hand, which options 22 levels of freedom.
“I really feel assured saying that now we have essentially the most superior humanoid robotic by a protracted shot,” Musk mentioned, including that rival robots are lacking the AI mind, if not the power to provide the robots at very excessive volumes. Tesla has each, so the corporate’s potential to steer the sector is notable.
““I feel Optimus would be the most respected a part of Tesla,” Musk mentioned.
Musk additionally mentioned Tesla Vitality, significantly its Megafactories. He famous that Lathrop is ramped, and Shanghai is progressing properly. “It gained’t be lengthy earlier than we’re sipping 100 GWh a yr of stationary storage at Tesla,” Musk mentioned. Musk famous that Tesla wants its vitality enterprise to scale so the corporate can transfer the needle within the vitality sector.
16:48 CDT – Elon Musk reiterated Tesla’s goal of rolling out a ride-hailing service subsequent yr in California and Texas subsequent yr relying on regulatory approval.
He additionally famous that Tesla is now not coaching compute-constrained. “The FSD is definitely getting so good that it takes us some time to search out errors. It takes loads to determine if Software program A is best than Software program B, since neither one in every of them are making errors,” Musk mentioned.
16:46 CDT – Musk famous that Tesla’s inside estimate is that FSD could be safer than a human driver by Q2 subsequent yr.
“There’s no want to attend for the Robotaxi or the Cybercab to expertise full autonomy. We anticipate to realize that subsequent yr, with our present car line,” Musk mentioned. He additionally famous that Tesla staff within the Bay Space now have an autonomous ride-hailing service. The service nonetheless makes use of security drivers, although.
16:41 CDT – This doesn’t imply to say that Tesla won’t be counting on battery suppliers, after all. The expansion of Tesla Vitality and the corporate’s different companies requires a variety of suppliers.
Musk additionally mentioned the progress of FSD, similar to the discharge of V12.5 and the Cybertruck’s FSD, in addition to Precise Good Summon (A.S.S.). He notes that FSD V13 is anticipated to be rolled out quickly. V13 is anticipated to see 5-6x enchancment in miles between interventions.
16:38 CDT – Musk famous that Tesla continues to be on observe to ship extra reasonably priced automobiles beginning within the first half of 2025. “I do need to give some tough estimate, which is, I feel, 20-30% development subsequent yr,” Musk mentioned. He additionally famous that he’s “assured of Cybercab reaching quantity manufacturing in 2026.” Tesla is estimating a manufacturing of two million Cybercabs per yr.
Musk said that the 4680 traces are doing properly. Tesla’s 4680 is quickly approaching the purpose the place it os essentially the most aggressive cell available in the market. “I feel if we execute properly, Tesla’s internally produced cell would be the most cost-competitive cell in North America,” Musk mentioned.
16:35 CDT – Elon Musk makes his opening remarks. He offers a fast recap of Q3. He notes that Tesla achieved document deliveries at a time when the whole trade is challenged. “It’s notable that Tesla is worthwhile regardless of a really difficult automotive surroundings,” Musk mentioned, highlighting that this quarter is a document Q3 for the corporate.
He notes that Tesla produced its 7 millionth automobile yesterday. He congratulates the Tesla staff for pulling the feat off. Musk additionally said that Tesla Vitality is doing properly. He additionally states that the “Tesla staff did an exceptional job” through the “We, Robotic” occasion.
16:32 CDT – Tesla’s Head of Investor Relations opens the Q3 earnings name. Elon Musk and various executives are current.
Let’s go!
16:29 CDT – One minute to go! Let’s see if this name begins on time.
16:28 CDT – Tesla bull Gary Black of The Future Fund summarized the Q3 earnings outcomes fairly properly. It’s a beat.
$TSLA beat solidly on 3Q adj eps ($.72 vs $.60 est and vs my $.56 est). TSLA +9.4% AH. Driving the beat:
– Auto GM ex-reg credit was 17.1% vs 14.9% WS est.
– Vitality income soared +90% (vitality GM 30.5% vs 24.4% YoY)
– Service income soared +91% (providers GM 8.8% vs 6.0% YoY)…— Gary Black (@garyblack00) October 23, 2024
16:25 CDT – It’s 5 minutes earlier than the earnings name and there’s nonetheless no music. Oh, boy, I hope they begin this one on time. No motive to be late anyway, for the reason that Q3 outcomes had been extraordinarily spectacular. TSLA inventory after hours is up 9.44% as of writing.
Aaand there’s Tesla’s techno music. We’re shut, everybody.
16:15 CDT – Hey, everybody, and welcome to our reside weblog of Tesla’s third quarter 2024 earnings name. Tesla’s Q3 outcomes are the most effective we’ve seen in a very long time, so this upcoming earnings name will most likely be fairly memorable. Particularly spectacular was the truth that the Cybertruck reached optimistic gross margin within the third quarter. That’s fairly nuts!
Right here’s the livestream of Tesla’s Q3 2024 earnings name.
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